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Japan’s Ecommerce Giant Mercari To Accept Bitcoin Payments
Mercari, a leading online marketplace in Japan, is set to revolutionize shopping by introducing Bitcoin payments.
With over 22 million users monthly, Mercari operates like a digital flea market, offering a platform for buying and selling second-hand goods.
Mercari is a bit similar to Amazon or eBay in countries like the US, UK and Australia.
eBay struggled to gain traction in Japan, causing it to shift focus, partnering with Yahoo! Japan Auctions—another dominant player in the Japanese auction market.
Mercari and Yahoo Auctions stand as popular forces in Japan’s online marketplace and auction scene.
The innovative move by Mercari, slated for completion by June 2024, will integrate Bitcoin, the largest cryptocurrency by market value, into its payment system.
This integration is managed by Mercoin, Mercari’s blockchain-focused subsidiary based in Tokyo.
While the app’s pricing will continue in Japanese yen, users gain the flexibility to transact in Bitcoin.
Mercoin’s role is crucial as it converts Bitcoin payments into yen for sellers, ensuring a seamless process.
Despite this new payment method, transaction fees will align with those charged for traditional currency dealings on Mercari.
This development follows Mercari’s 2023 launch of an in-app Bitcoin exchange, allowing users to buy Bitcoin using various funding sources like bank balances or proceeds from sales on the platform.
Mercari, established in 2013, has shown impressive financial growth, reporting a profit of 2.8 billion yen ($19.4 million) in the third quarter of 2023, a substantial increase from 555 million yen in the prior year.
Revenue also surged, hitting 44.27 billion yen (~$299 million USD), marking an 11.2% growth year-on-year.
Beyond Bitcoin, Mercari is exploring the integration of NFTs, though specific plans are yet to be disclosed. Read more here.
Zucoin’s strategic focus on Zutopia amid wider industry challenges.
How Does Mercari’s Crypto Integration Impact The Future Of Online Marketplaces?
Mercari’s leap into Bitcoin payments is a significant milestone in the evolution of online marketplaces.
This move, marking the integration of the world’s largest cryptocurrency into a major digital flea market platform, exemplifies the ongoing revolution in digital finance and ecommerce.
Let’s delve into the strategic and technical facets of this development, particularly in the context of Zucoin and Splitchain.
Firstly, Mercari’s decision to integrate Bitcoin for its 22 million monthly users mirrors a broader trend in ecommerce: the growing global acceptance of cryptocurrencies as a valid form of payment.
This is where Zucoin shines.
Zucoin’s underpinning Splitchain architecture, designed for seamless integration with existing ecommerce platforms via “Zubot”, a tool designed to handle automated bulk transactions, offers a similar opportunity for businesses looking to adopt cryptocurrency payments.
The ability of Zucoin to facilitate transactions quickly and with minimal fees makes it an ideal candidate for platforms like Mercari, where speed and cost-efficiency are paramount.
For businesses, transactions that can settle fully in 90 seconds, are important.
It increases the flow of value, helping to make businesses more productive.
Traditional credit cards carry fees, that in large transactions, eat into business profits.
Moreover, the role of Mercoin, Mercari’s blockchain-focused subsidiary managing the Bitcoin payment integration, highlights the importance of having a dedicated crypto strategy.
This is where Zucoin’s work on simplifying third-party integrations should shine.
Splitchain’s robust digital ledger infrastructure, focused on ease-of-use, scalability and safety, provides a solid foundation for companies like Mercoin and others to build upon.
It ensures that the transition from payments with traditional currencies to digital assets is not only smooth but also reliable.
The introduction of an in-app Bitcoin exchange by Mercari underscores the growing trend of integrating cryptocurrency swaps and trading services within online stores.
Furthermore, Mercari’s financial growth and its exploration into integrating NFTs signify the potential of crypto technology in diversifying revenue streams for online marketplaces.
In similar ways, Zucoin is working to position the Splitchain ecosystem so it supports the evolving needs of online and real-world businesses.
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All the best,
—Rob
MyZucoins
Disclaimer: Of course, this is not advice, financial or otherwise. It’s also important to consider the risks and challenges associated with any potential benefits.